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Banks and other
operators in the financial sector have kicked against the terms of a
legislation before the House of Representatives, which seeks to
criminalise the use of young females to solicit for funds deposits.

The new law
proposed by the house will prescribe jail terms, heavy fines on banks –
including a withdrawal of banks’ operational license – for those who
stray beyond the allowed standards of placing employees, particularly
female, on deposit sourcing.

This practice is often referred to as ‘corporate prostitution’ by its critics.

Facing prison

Banks or their
representatives may pay as much as N10 million and face up to three
years imprisonment if convicted of breaching the new law, which will
govern deposit sourcing and how existing and prospective employees are
commissioned for them.

The House said
banks and insurance companies have exploited their employees, mostly
female, by detailing them to secure customers and deposits at all cost
– including trading sex for deposit.

House Speaker
Dimeji Bankole said the legislation, sponsored by Femi Gbajabiamila, is
directed to curb the “unethical conduct and anti-labour practice.”

“These practices
are not just anti-labour but also dehumanising”, he said at the first
day of public hearings on the bill attended by financial sector
operatives. “Our values and cherished norms as a people, and the
philosophy that underpins them, can quite easily be eroded unless there
is a strong, indeed sacred, moral and ethical foundation, not just in
the defining principles of our legislations, but in the society as a
whole.”

Some banks however
fear the law will infringe on their capacity to raise capital and deny
they have abused their workers in attempting to get funds. A
representative of Stanbic IBTC, Christopher Knight, opposed two key
provisions of the bill which the banks called “draconian.”

No limit, please

The bank in its
presentation, said it considered as inappropriate the proposed Section
2 of the Bill, which seeks to limit monetary targets for employees in
banks and insurance companies and other related industries to a maximum
of N25 million in a year.

He argued that at
certain levels of employment, the generation of minimum amount is
reasonable, given the level of remuneration paid to the staff concerned
whether male or female.

“Any such limitation to N25million, will only lead to under performance for employees who earn jumbo pay,” he said.

Also, the bank kicked against the proposed penalty for defaulting
organisations and corporate institutions, explaining that the
revocation of operational license will be too harsh a penalty as the
bill already proposes a substantial fine and period of imprisonment for
law breakers.